Morgan Stanley analysts suggest that Tesla (NASDAQ: TSLA) could become a significant player in the drone and electric vertical takeoff and landing (eVTOL) markets. They estimate the “low altitude economy” could reach a total addressable market (TAM) of $9 trillion by 2050.
Although Tesla has not officially announced plans to enter aviation, its expertise in battery technology, AI, robotics, and manufacturing positions it well for this sector. CEO Elon Musk has emphasized the importance of domestic drone manufacturing, stating, “Any country that cannot manufacture its own drones is doomed to be the vassal state of any country that can.”
Morgan Stanley notes that even a modest share of the future eVTOL market could significantly impact Tesla’s valuation, potentially adding between $100 and $1,000 per share.
